Merlin, Corban comment, FINAL

Corban v. USAA: A Case Providing Far Too Little Because It Was Rendered Far Too Late ∗William F. “Chip” Merlin, Jr. I. INTRODUCTION To understand the significance of the Mississippi Supreme Court’s decision in Corban v. USAA, it is necessary to consider the financial devastation and unnecessary insurance coverage litigation caused by the absence of it during the four years from the date Hurricane Katrina hit Mississippi’s gulf coast. During that time, insurers used the relatively untested Anticoncurrent Causation Clause (ACC), intervening Fifth Circuit Court of Appeal decisions interpreting it, and a new adjusting method called the wind/water protocol to wrongfully deny or underpay thousands of claims. The property damage caused to Mississippi’s gulf coast during Hurricane Katrina was unprecedented in that the tremendous amount of damage was caused by both storm surge and wind. Shortly after the storm, Mississippi officials estimated that 90% of the 12structures within half a mile of the coastline were obliterated. Indeed, in the thirteen months following the storm, there were 263,774 insurance claims made in Mississippi’s 3six coastal counties alone. Most structures were insured by all-risk policies. Under traditional insurance adjustment rules, all-risk policyholders bear a minimal burden to establish that a “direct physical loss” was sustained and the dollar amount of their loss. Insurers are then required to prove the amount of the ...